What effects did the Great Depression have on the credit industry?

The Great Depression severely impacted the credit industry by leading to a dramatic decline in consumer confidence and spending, resulting in a sharp drop in credit demand. Many banks faced insolvency due to loan defaults, which prompted stricter lending practices and a contraction of available credit. Additionally, the economic turmoil caused a shift in regulatory policies, as governments implemented measures to stabilize the financial system and protect consumers, ultimately reshaping the landscape of credit in the years that followed.